Investors who use a planner aligned to a financial institution are half as likely to regard their investment experience positively, according to the first quarterly report from CoreData. The latest CoreData Investor Sentiment Index revealed while 19 per cent of all respondents rate their investment experience as “strong or very strong”, this figure falls to 7 per cent for those who use an institutionally aligned planner.
Those who use an aligned planner are also more likely to regard their own investment knowledge as “poor or very poor” – 32.6 per cent compared to 25.2 per cent of all respondents. The sample size was a representative sample of 1150 people, 89 of whom had a relationship with an institutionally-aligned planner. Those who use a planner aligned to an institution and have a mortgage are also twice as likely to be facing difficulty in making mortgage repayments on the back of consecutive interest rate rises.
While 14.4 per cent of all respondents say the six rate rises since May 2006 (excluding the seventh on March 5, 2008) have made property loan repayments more difficult, this figure doubles to 27.9 per cent for those who use an institutionally aligned financial planner. A spokesperson for CoreData says these people are more likely to have both a residential and investment mortgage – 25.6 per cent versus 20 per cent of the general sample of mortgagees – so are perhaps more geared than the average investor.